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WWE sues Jakks and THQ over alleged bribery and racketeering

Wrestling entertainment group WWE has filed a lawsuit against a number of parties including THQ and Jakks Pacific, alleging that the WWE videogame licenses that they hold were obtained through bribery.

Wrestling entertainment group WWE has filed a lawsuit against
a number of parties including THQ and Jakks Pacific, alleging
that the WWE videogame licenses that they hold were obtained
through bribery.

The lawsuit, which demands that the license be voided, also
names several of Jakks' top ranked executives, former WWE
licensing agent Stanley Shenker and Associates Inc, Bell
Licensing Inc, and former WWE senior vice president of
licensing and merchandising James Bell.

The gist of the claim is that in 1998 Bell, in his role at
the WWE, conspired with Shenker to accept over $100,000 in
bribes from Jakks related to the videogames license, which
was ultimately awarded to Jakks in partnership with THQ.

According to the WWE suit, Bell hid "clearly superior"
pitches from Activision and THQ from senior management, and
advised Jakks to enhance its offer - resulting in the THQ
partnership which continues to produce the hugely successful
wrestling titles to this day.

The WWE now wants the resulting license to be nullified, and
is also seeking damages resulting from the alleged bribery.

Commenting on the lawsuit this morning, THQ denied any
wrongdoing and expressed its belief that it has handled the
WWE license in a manner which is satisfactory to all parties
involved in the deal.

"THQ believes that WWE is pleased with the manner in which
THQ has managed their brand in the video game category," the
statement reads. "As THQ is not directly accused of any
wrongdoing in the complaint - rather the complaint alleges
wrongdoing on the part of Jakks Pacific and others of which
THQ was and is unaware - THQ is not in a position to comment
on these allegations."

"In the event, either there is no basis for terminating the
video game license, or THQ expects to be made whole by those
whose conduct is eventually found to be unlawful. THQ intends
to vigorously protect and pursue its rights, if necessary,"
it concludes.

In the event of the bribery allegations being proved true,
it's certainly possible that THQ would be in a position to
seek damages from those responsible if it truly was unaware
of the situation - and the firm could be expected to win the
WWE license for itself in such a situation.